Stocks Radar: ICICI Lombard, Lakshmi Vilas Bank, Phoenix Mills, Tata Motors, Yes Bank
Here’s a look at the stocks in news moving the markets today.
Indian equity indices were trading lower on Thursday after a shaky start.
At 11:40 am, the S&P BSE Sensex was 0.26 percent weaker at 38,894.44 points while the NSE Nifty 50 was trading 0.31 percent lower at 11,535.50. Bajaj Finance Ltd. was the top gainer on the Nifty 50 Index while Vedanta Ltd. was the top loser.
The market breadth was tilted in favour of sellers as 1,020 stocks declined and 655 advanced. Nine of the 11 sectoral gauges compiled by the National Stock Exchange fell, led by NSE Nifty Metal Index’s 2.71 percent loss. The NSE Nifty FMCG Index was the top gainer, up 0.23 percent.
Here's a look at the stocks in news moving the markets today:
ICICI Lombard Rises After Stake Sale By Prem Watsa’s Fairfax
Shares of ICICI Lombard General Insurance Co. Ltd. rose up to Rs 2.24 percent to Rs 1,219 apiece.
This, after Canadian billionaire Prem Watsa's Fairfax Financial Holdings Ltd. sold ICICI Lombard shares worth Rs 2,561.50 crore, equivalent to half of its stake in the firm, Livemint reported Thursday. As of June 30, Fairfax owned a 9.9% stake in the general insurance company.
According to data from the stock exchanges, FAL Corporation, a subsidiary of Fairfax, sold 22.67 million shares on Thursday at Rs1,129.68 apiece.
The ICICI Lombard stock is trading at 44 times its estimated earnings per share for the coming year, Bloomberg data shows.
Lakshmi Vilas Bank Hits Lower Circuit After FIR Against Board
Shares of The Lakshmi Vilas Bank Ltd. fell to their lowest possible, declining as much as 4.95 percent to Rs 36.50 apiece.
Economic Offences Wing, Delhi, has registered a first investigation report against the bank and its board of directors, accusing them of cheating, criminal misappropriation of funds and breach of trust, Lakshmi Vilas Bank said in an exchange filing Thursday.
The FIR is based on a complaint filed by Religare Finvest Ltd. pertaining to adjustment of their deposits against dues of RHC Holding Pvt. Ltd. and Ranchem Pvt. Ltd, the filing stated. The bank is considering appropriate legal measures to counter the same.
Lakshmi Vilas Bank is in the process of a merger with Indiabulls Housing Finance Ltd.
The bank’s stock has declined 59 percent in the last 52 weeks, Bloomberg data shows.
Phoenix Mills Drops On Promoter Stake Sale Plans
Shares Of Phoenix Mills Ltd. fell up to 3.50 percent intraday to Rs 690.00 apiece, the lowest since Sept. 18.
The promoters of Phoemix Mills are seeking to sell 3.8 million shares, or 2.5 percent stake, in the company via secondary placement, according to the terms for the deal obtained by Bloomberg. The floor price for the promoter stake sale has been set at Rs 665 per share.
The deal will fetch the promoters $36 million, and comes with an option to upsize up to an additional $16 million by offering up to 5.5 million shares, or 3.6 stake in the company. UBS Securities India is acting as the sole placement agent for the deal.
The trading volume in the Phoenix Mills stock was more than the 20-day average for this time of the day.
Tata Motors Slumps After JLR Plans A Week-Long Shutdown In Nov
Shares of Tata Motors Ltd. fell up to 5.06 percent to Rs 118.20 apiece, the lowest since Sept. 9.
Jaguar Land Rover plans to close its U.K. factories for a week in November to guard against disruption to supply chains from a possible no-deal Brexit, Chief Executive Officer Ralf Speth said. The temporary halt will mean lost production for the unit of Tata Motors, already impacted by a global slowdown in the car industry.
The India carmaker’s stock has declined47 percent in the past 52 weeks, Bloomberg data shows.
Stake Sales By Rana Kapoor Batter Yes Bank Stock
Shares of Yes Bank Ltd. fell as much as 5 percent intraday to Rs 48.50 apiece, the lowest since Sept. 4, 2013, when the stock traded at Rs 44.60.
This after Rana Kapoor sold more stake in Yes Bank to repay debt of his privately held firm, bringing down the family’s ownership in the private lender he co-founded.
On Thursday, Yes Capital (India) Pvt. Ltd. sold a 1.82 percent stake in the bank for Rs 241.52 crore, according to a statement. The firm sold 4.65 crore shares at Rs 51.94 apiece, according to the bulk deals data on the National Stock Exchange’s website. It now holds 1.15 percent in the private lender. According to BloombergQuint calculations, the Kapoor family now holds 5.58 percent in Yes Bank.
The private lender's stock has declined 75 percent in the past 52 weeks, Bloomberg data shows.